Canada UPS delivery


I received a pair of interconnects from Canada a week or so ago. Shipping cost were $20.00 for UPS ground. Today I get a bill from UPS for another $19.00 Listed as "Entry prep fee" under brokerage service. Funny how this stuff gets swept under the carpet till after the sale is complete. Does that sound about right? $39.00 to ship a ten-pound item from Canada to the US insured for $500.00. Where did I go wrong in this deal?
128x128glen

Showing 1 response by lornecherry

sutts, go to the thread http://audiogo5.iserver.net/cgi-bin/fr.pl?ymisc&1002308344&openusid&zzLornecherry&4&& I posted a rather tedious explination of the how/what and where's of brokerage charges (entry prep fees).

UPS has a nasty habit of trying to bill "after the fact". Then, they try and use a collection agency if you refuse to pay. Here's the 5 minute drill:

1) UPS processes your cross border shipment but for some reason does not call before delivering to disclose/authorize the brokerage charges. (FEDEX does, and that's the ethical way to do it). On ground shipments this fee can be excessive for a small item (i.e $25.00 for $50 cables!)

2) UPS sends you a bill in the mail "after the fact", upsetting you as a buyer and you take it out on the seller(it's not the seller's fault)UPS then leverages their business size to try and collect the brokerage fee.

Here's the ethical way to handle this flagrant foul by UPS.

3) If the fee is reasonable (i.e. $35.00 on a $3,000 amp) pay it. Clearing large, expensive packages is more difficult than small items and can require significant documentation over $1600 value (harmonized code numbers, commercial invoices, cetificate of compliance, radiation certificate for CD players, etc,). Isn't NAFTA fun?

4)If the fee is unreasonable ($20 on cables) --Ignore the bill! UPS will try and collect and even threaten to "stop delivering to your address". Keep ignoring the bill -- after 90 days it is automated to a collection agency, who's junior reps have not yet eveloved from prehistoric Cromagnon man. These collection apes will insist you owe the money and try every stupid collection trick to get you to pay. Remember, it's UPS, not you, that is unethical ---and also remember these collection reps are paid only if they collect.

You simply state "I did not authorize the charges" and refuse to pay. If the fee is under $100 they will send a plethora of automated form dunning letters, which are great if you run out of cat litter. But for under $100 they don't go to court and will just write off the bill after a while. If they threaten to affect your credit (they can't do that in Canada) threaten them back. Have fun! ... and remember, you are right and they are wrong!

If this all sounds a bit disconcerting, it's because I've been through this 50 times or more -- and we have a commercial UPS account and brokerage account, as we ship and receive about 3,000 international packages a year. UPS simply doesn't get it -- they cannot ethically bill after the fact and expect to collect. No business should operate like that ... and I think it's only a matter a time before the government cracks down on this practice. (I suspect that enough people actually do pay them to keep the charade going and going -- and that their higher "after the fact fees/collect ratio" has a better bottom line than a lower, predisclosed fee would.

Don't get me wrong, UPS IS entitled to a REASONABLE brokerage fee, but they are not entitled to hide it and then try to collect it. Perhaps if enough people don't pay the brokerage prep fees UPS will get the message and call first with the brokerage fee, or reduce it on ground shipments with small values.

What bothers me the most about this charade is that it almost always creates unfounded anamosity towards the seller and puts a damper on otherwise smooth deals. (Too bad we can't get a senior UPS CRM or Finance person to glance through these threads.)

And perahps A'gon will post a permanent page with an international shipping "checklist", as shipping, like it or not, is part of your eLife and part of almost every A'gon transaction. --Lorne